Artificial Intelligence (AI) is not new in the e-commerce industry. In fact, AI has influenced most industries, from gaming to the field of sciences. But the AI we see in movies is not what we are talking about.
AI in reality appears less like human robots and more of a learning technology that uses algorithms as its foundation of functioning.
In the e-commerce industry, AI has transformed the way retailers and businesses cater to their customers, how they handle data, and so on. It provides more relevance and has improved the customer experience more than it was before.
Learning how AI impacts the e-commerce industry will give you an overview of what it’s like to work hand-in-hand with machines. If you run your own e-commerce shop, you are either utilizing AI or planning to do so, which we hope.
Here is how AI transforms the e-commerce industry in a better way.
10 Ways Artificial Intelligence is Transforming the E-commerce Sector
1. Personalization
The power of personalization is something that cannot go noticed, as about 80% of consumers are more likely to purchase an item from a company that provides a tailored experience.
Creating personalized content and ads for your customers is not difficult nowadays. The use of AI-powered tools is readily available for people who are within the e-commerce industry. AI receives plenty of datasets and insights from different platforms. They sort data into information that is ready for businesses to use.
With all the data collected and processed it can be used by e-commerce shops in multiple ways. They can utilize it to generate accurate product recommendations. Customers who are frequently looking for beauty care products will get recommendations related to their searches and previous purchases.
Another way AI is used in personalization is through email marketing. Even information gathered by AI is used to create email content and deliver it to the right customer. Personalization can be discounts or offers related to the previous activities of the customer on the e-commerce shop.
Personalization not only helps consumers in the process of buying a product, but it also ends up boosting sales of websites and building brand awareness and loyalty.
There are so many ways you can use AI to deliver personalized content and ads to your consumers.
2. Customer Support
Meeting your customers’ expectations must be one of the most important parts of running a business. This includes many aspects, one of which is providing 24/7 service to help them with their needs.
One comprehensive solution to being available to your clients or customers constantly is to use chatbots. Chatbots are customer service tools equipped with AI technology for e-commerce shops to manage different business challenges.
Most chatbots nowadays are powered by machine learning, so they tend to become more human-like in their approach as they continue to learn and communicate with customers.
This automated tool uses natural language processing to understand questions and the needs of the customer. Since it is automated, when customers type in their questions, chatbots can provide answers immediately without the aid of a human, enabling e-commerce shops to provide round-the-clock service and chat support to their customers.
Allowing chatbots to take over minor and repetitive tasks will help businesses save more money. In addition, it helps employees become more productive by focusing on the important aspects of the business. The customer support team can now attend to calls that are crucial instead of making other customers wait.
3. Managing Inventory
An efficient inventory in an e-commerce shop means maintaining the right level of stock to meet the demands of the public without adding to idle stock.
If AI is used in the management of inventory, it will enable us to maintain stock based on the data of customers. By doing so, it can predict future trends, anticipate product demands, and manage supply issues to prevent any problems with the inventory.
Some businesses now even use AI robots to work on retrieving and packing for immediate dispatching of orders.
4. Detection of Threats
Fake reviews, forged products, e-skimming, and so on are on the rise, and as we become more digital, we are to expect more cybercriminals attacking online businesses.
However, with the help of artificial intelligence, it can increase the probability to solve or detect attacks faster. This will help businesses determine the presence of immediate threat or presence of vulnerability within the system.
Early detection of threats will help protect the data of customers and the business’s reputation. Another way AI helps e-commerce websites is by determining fake reviews that can compromise their reputation. It can even spot counterfeit items from competitors.
5. Adapting to Pricing Changes
AI for retail can give businesses financial knowledge of their competitors and help make pricing recommendations.
This type of solution ensures that you can immediately respond to price changes in your market. It also assists in determining how other businesses update their product offerings so you can adjust your own product prices.
6. Virtual Assistance
AI can now enhance the shopping experience of customers with the help of virtual assistants. They help mimic the in-store salesperson while expanding chatbot conversation. Hence, customers will feel like they are walking into a store even when shopping online.
Here are the main functions of AI as a virtual assistant:
- It will immediately display the item of interest of the customer once they type what they are looking at on the search bar
- It provides targeted description and details once requested
- Prevents technical complications once the customer is ordering on site
- Suggest discounted items or sales to your customers
- It facilitates retention and conversion by connecting leads to human employees
7. Identifying Target Audiences
AI technology is now equipped with timely intelligence to solve business issues like finding leads. AI can be used in predictive marketing business to find significant leads using the data taken from the websites of competitors.
Some AI software can identify quality leads and inform the sales team about it for them to convert those leads to paying customers.
8. Customer Retargeting
Retargeting has multiple benefits for e-commerce shops. Two of the most common reasons are to build brand awareness and reduce cart abandonment.
Potential customers are interested buyers of services and products, so it means that for only a few steps they are about to buy from your business. However, there are some hindrances that may occur along the way.
When a business retargets, it could convince potential buyers to complete the purchase. AI can understand what is needed, hence, assisting businesses with their retargeting techniques.
9. Automated Tagging
Tagging of products for big e-commerce shops is crucial to keep things organized. AI can help in the automation of tagging items according to certain categories. It can create tags depending on the size, material, color, and so on. Tagging keeps things in order and makes them easily discoverable and organized.
Any new item can be automatically tagged by an AI machine or software without the need for human intervention.
10. Voice and Visual Search
Google reported that 27% of their searches worldwide are conducted through voice searches. In addition, it has been noticed that up to half of adults use voice searches when searching online. The increased surge in voice and visual search is becoming part of customers’ behavior.
As people are geared towards the use of voice and visual searches, e-commerce businesses are required to adopt such changes to provide a better customer experience.
Customers can use voice assistants to place orders online and receive similar product recommendations. The aid generates a rapid and compassionate response, similar to a human’s. The human factor in the responses instills trust and loyalty in the e-commerce business.
Visual Search is the next big thing in the e-commerce business, and it’s all because of AI. Instead of typing the text, it uses photos to find related products. It has shortened the time between product search and discovery for consumers, allowing them to find more precise and desired fits in less time.
By hiring a web designer, you can incorporate these features into your website for a better customer experience.
Conclusion
Artificial intelligence has made it possible for e-commerce businesses to understand their data and create effective marketing campaigns. By incorporating it into your operations, you’ll always be a step ahead of your competitors.
